ESG reporting
What does ESG stand for?
Un Reporting ESG (Environmental, Social, Governance), or sustainability report, involves the disclosure of data that describe the impact of a company in three different areas: environment, society and governance. It provides criteria, especially for investors, to help find companies with values that match their own and to consider not only economic performance, but also environmental, social and business management performance for their investment decision.
What does an ESG report contain?
The environmental criteria may include the greenhouse gas emissions released into the atmosphere by the company, the amount of waste it produces, the conservation of natural resources and the treatment of animals, etc. THEESG reporting it also makes it possible to evaluate any environmental risks and their management by the company.
The social criteria focus on working conditions, such as but not limited to: equal opportunities, health and safety at work, human rights, social responsibility and supply chain management, etc.
The governance criteria may include: business ethics, regulatory compliance, anti-corruption practices, organizational and shareholder structure, etc.
The ESG reports are important for understanding a company's full risk profile, but they can also lead to a better business reputation.
How is ESG reporting carried out?
Companies can voluntarily disclose their ESG results (ESG performance) in various ways, including reports on corporate social responsibility (CSR), the websites of the companies themselves or by providing data and information to international organizations that promote performance reporting and carry out an evaluation (ESG rating). Precisely in reference to these organizations, the most relevant are the following:
- CDP;
- MSCI, which publishes the MSCI ESG Ratings;
- S&P Global Corporate Sustainability Assessment (CSA);
- Sustainalytics;
- EcoVadis;
- Virgo Eiris;
- Standard Ethics.
Discover How can we help you achieve ESG objectives.
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